Annuities
Also known as Payout stage
What is Annuitization?
The one that purchased the contract
Who is the owner?
Retirement savings plan set up by an employer and
funded through direct salary reduction.
What is a 401k?
How many Rider options are there?
What is 4?
Only a portion of the accumulated value is taxable, because some of the
funds have already been taxed.
What is Non-Qualified?
Annuity product which earns a set, guaranteed rate of
interest while guaranteeing the principal investment,
the insurance company assumes the risk
What is Fixed Annuity?
The person who wrote the contract.
Who is the producer?
Qualified account set up at a financial institution with
tax-free growth or on a tax-deferred basis.
What is an IRA?
Allows the owner to activate a guaranteed income stream for life while
retaining access to the accumulated value.
What is an Income Rider?
Direct or indirect transfer of funds from one qualified plan to another,
deferring any tax consequences.
What is a Rollover?
Contract does not go through an accumulation phase
but instead goes directly to the payout phase
What is SPIA?
Must be a living breathing person who receives the
payments.
Who is the Annuitant?
Funded with "post tax" funds.
What is a ROTH IRA?
An added benefit that is guaranteed to grow daily at a fixed compound
annual rate, regardless of what happens in the markets.
What is a Death Benefit Rider?
Determines if a contract is appropriate based off the owner’s willingness and
ability to take on a certain level of risk.
What is Suitability?
Market-driven investment with potentially attractive
returns, such as the S&P 500, guaranteed minimum
return while deferring taxes on gains
What is Fixed Indexed Annuity?
May be one or more individual, a Trust, Pension Plan,
or Corporation, that is designated by the owner, to
receive the proceeds.
Who is the beneficiary?
Athene allows this to be "stretched". These funds
continue to grow tax deferred.
What is an Inherited IRA?
Made up of three features; enhanced free withdrawals, return of premium,
enhanced annuitization.
What is a Liquidity Rider?
Third parties that contract with insurance companies to distribute, recruit
Producers and market an insurance company’s products.
What is IMO?
Annuity that the contract owner assumes the risk as
they can lose all of their investment with market
fluctuations
What is Variable Annuity?
Arrangement where one person who may be living or
testamentary agrees to hold property for the benefit
of another.
What is a Trust?
For employees of public schools, cultural organizations,
and other non-profit, charitable, and educational
organizations.
What is a 403b/TSA?
This Benefit is equal to the premium less all prior Net Withdrawals, which are
the sum of all prior Withdrawals less any applicable Withdrawal Charges.
What is the Return of Premium Rider?
Relates to Income Rider, sometimes used in place of “Rider Interest Rate.”
What is Roll Up Rate?